Sunday, 24 May 2009

Vietnam's inflation eases to 5.58 percent in May

A decline in transportation and telecommunication costs have eased Vietnam's inflation rate to 5.58 percent in May after a year of skyrocketing prices, the government said.

The country's consumer price index fell to 9.25 percent last month, the General Statistics Office reported in a statement late Friday. The figure is down from 11.25 percent in March and 14.78 percent in February. In 2008, inflation rose to nearly 23 percent, the highest since 1991.

Transportation and telecommunication costs drove inflation down, with prices down 5.13 percent and 7.43 percent respectively from the same period last year.

However, prices still surged this month for food, medicine, beverages, home appliances and garments and textiles, said the government, which issued the data ahead of the month's end based on estimates.

Overall, food costs were 6.5 percent higher compared to last year, while beverage and textile prices both rose nearly 10 percent. Prices for medicine increased by 8 percent, it said.

Last month, Prime Minister Nguyen Tan Dung predicted that the inflation rate would fall to 6 percent in 2009.

The government also lowered its growth rate target to 5 percent from 6.5 percent. The economy expanded 6.2 percent last year, the lowest level in nearly a decade and down from 8.5 percent in 2007, but still one of the world's fastest growth rates.

Business Week

No comments:

Post a Comment